relating to contracts with local workforce development boards.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (e), Section 2308.264, Government
Code, is amended to read as follows:
(e) In consultation with local workforce development
boards, the Texas Workforce Commission by rule shall establish
contracting guidelines for boards under this section, including
guidelines designed to:
(1) ensure that each independent contractor that
contracts to provide one-stop workforce services under this section
has sufficient insurance, bonding, and liability coverage for the
overall financial security of one-stop workforce services funds and
operations;
(2) prevent potential conflicts of interest between
boards and entities that contract with boards under this section;
[and]
(3) ensure that if a board acts as a fiscal agent for
an entity that contracts with the board to provide one-stop
workforce services, the board does not deliver the services or
determine eligibility for the services; and(4) ensure that an entity that contracts with a board
under this section may use, display, and advertise the entity's
name when providing workforce services for the board.
SECTION 2. The Texas Workforce Commission shall adopt rules
as required by Subdivision (4), Subsection (e), Section 2308.264,
Government Code, as added by this Act, as soon as practicable after
the effective date of this Act. Rules adopted by the Texas
Workforce Commission under Subdivision (4), Subsection (e),
Section 2308.264, Government Code, as added by this Act, apply to
any existing contract for one-stop workforce services.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.

______________________________ ______________________________
President of the Senate Speaker of the House

I hereby certify that S.B. No. 998 passed the Senate on
April 26, 2005, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 998 passed the House on
May 25, 2005, by the following vote: Yeas 144, Nays 0, two
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor